The first of three cost of living payments will start to be paid from April 25 for those on means-tested benefits such as Universal Credit, the Department of Work and Pensions (DWP) has announced.
The £301 is the first of three instalments of the £900 DWP support package announced by Chancellor Jeremy Hunt during November’s Autumn Statement, with the other two due later this year and early next.
Around 395,000 eligible people in the North East should receive the money, with the first batch due to arrive between Tuesday, April 25 and Wednesday, May 17, according to the DWP. A spokesperson said that he was unable to narrow down the exact payment dates within the three-week window but confirmed that the two previous payments of £326 and £324 last year were mostly made within the first week and a half after the first possible date.
Read more: Universal Credit: What the announcements in the Budget mean for you if you claim benefits
There will also be a separate £150 for over 6m disabled people nationwide and £300 for another 8m pensioners on top of their Winter Fuel Payments to help them meet their energy bills coming later this year.
According to the DWP, which first announced its plan to issue the £900 on January 3, The £301 payment will be sent out automatically and directly to recipients, meaning those eligible do not need to apply or do anything to receive it. The payment reference for bank accounts will be DWP COLP, along with the claimant’s National Insurance number.
More than 8m people in the UK received the £650 cost of living payment last year, but this year the payment has been increased to £900 and will be split into three payments of £301, £300 and £299. The Government has refused to release exact dates when the second and third payments will hit people's bank accounts, just Autumn 2023 and Spring 2024. But as it has already stated that payments will all be made in the 2023/2024 financial year, the last sum should be paid before April 5, 2024.
Last year's payments to those claiming Universal Credit were made between July 14-31 and between November 8-21, with those claiming Tax Credits made slightly later. The DWP has indicated that the payments to those claiming Tax Credits will also be made slightly later this time. HMRC will publish details of when payments will be made to these customers along with the bank account payment reference.
Mel Stride, Secretary of State for Work and Pensions, said: “These payments will give a financial boost to more than 8m households as we continue to wrap our arms around the most vulnerable, while the best way we can protect people from high costs is to halve inflation by the end of this year. In the long-term, we know work is the best route out of poverty, which is why we recently announced additional Work Coach support to help more people find work or increase their hours. Anyone looking to boost their skills or progress their career should speak to their work coach to ensure they’re accessing all the support the DWP can provide.”
To be eligible for the payment, you need to have been entitled to a payment for one of these benefits between 26 January and 25 February 2023, or payment for an assessment period ending between these dates:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
The DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 Cost of Living Payment if they make a successful backdated Pension Credit application by 19 May.
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